This is just a quick blog entry to give our comment on the recent house price data.
Currently everybody seems to be reporting falling buyer registrations and increased supply. Yesterday the RICS said that the house price balance - the difference between the percentage of surveyors reporting price rises and price falls - fell to nine from 21 in May. Apparently buyer interest fell for the first time since the start of the year while property coming on the market increased at its fastest pace since May 2007.
Here at BIGbleu we seem to be living in a different world! Based on the traffic to our BIGbleu "waterfront properties" and "properties with land" sections there is still very strong demand for property in the £500k-£2m bracket and extremely little good quality stuff coming onto the market. In addition we are getting record interest in our London "Flats for Sale" section and extremely few new properties being posted.
Historically, London house prices have always led the housing market out of recession and the regions have followed. The same seems to be happening this time. Nationally prices are still 10% below their 2007 peaks whilst central London prices are at or above their peaks. What's interesting is that people seem to be interpreting the weakness in the regions as a sign that the market could double dip - rather than the strength in London being a sign that the market as a whole will soon recover.
People are so negative! We are still really positive about the London property market (and our 15% central London house price forecast for 2010) for the second half of the year!